Navigating the healthcare system can be daunting, especially when it comes to managing the cost of medications.

However, there's good news on the horizon for Australians.

The federal budget has unveiled a measure to ease the financial burden of medication costs for the next year.

The federal government has announced a freeze on the cost of prescription medications listed on the Pharmaceutical Benefits Scheme (PBS).

This price cap, set at $31.60, is part of a broader suite of health measures included in the federal budget to reduce the financial burden of healthcare on individuals and families.

The federal government announced a freeze on the cost of PBS prescription medicines. Credit: Shutterstock

In delivering the 2024-25 federal budget, Treasurer Jim Chalmers underscored the government's commitment to bolstering Medicare and enhancing the nation's bulk-billing capabilities.

This initiative is designed to keep healthcare costs manageable and ensure that Australians can access the medical support they need without undue financial stress.

The news is even better for pensioners and concession card holders, as the $7.70 cap on their prescriptions will remain in place until June 31, 2029.

The budget also included an additional $3.4 billion investment to add new medications to the PBS, and the government has pledged $2.8 billion to establish 29 new urgent care clinics.

These clinics are intended to provide immediate care for non-life-threatening conditions, freeing emergency departments for more critical cases.

However, this move has not been without its critics.

The Royal Australian College of GPs (RACGP) has voiced concerns that the funds for these clinics would be better spent on increasing the Medicare rebate, directly reducing out-of-pocket expenses for patients seeking GP appointments.

‘Australians are already putting off essential care due to rising costs. This budget won’t help, so out-of-pocket fees will increase, Dr Nicole Higgins, President of the RACGP, said.

‘It will mean a sicker nation and more pressure on hospitals, which will cost the government much more.’

Dr Higgins also expressed concerns about urgent care clinics being ‘inefficient’, stating they are not ‘value for money’ given the required funding. She suggested that it would be more beneficial to invest funding into training GPs instead.

‘Australia has an ageing population and epidemic of chronic disease and mental illness, which means increasing demand for GP care, but only 10.5 per cent of medical students are choosing to specialise as GPs,’ she said.

‘This budget does nothing to reverse this trend, exacerbating a critical workforce shortage.’

Women’s Health

The budget also addressed specific health concerns for women, allocating $160 million towards targeted health measures.

This includes a $49.1 million boost over four years for longer consultations for complex gynaecological conditions and $56.5 million in funding to implement recommendations from the Medicare Benefits Schedule (MBS) Review Taskforce to enhance tailored maternity care.

Additionally, the $56.1 million Women's Health Package includes initiatives to support women and families dealing with miscarriage or pregnancy loss, provide free period products through National Aboriginal Community Controlled Health Organisations, and offer outreach healthcare for women and children experiencing family and domestic violence.

Mental Health

Mental health services have not been overlooked, with $361 million earmarked for free mental health services over four years.

This funding will upgrade the network of 61 Medicare Mental Health Centres and introduce a free digital mental health service accessible without a referral, expected to benefit around 150,000 Australians each year.

NDIS

The National Disability Insurance Scheme (NDIS) is set to receive a $468.7 million boost to address the findings of the independent NDIS Review.

Almost half of the funds will be allocated to reform efforts to prevent widespread fraud within the system, which will be developed collaboratively with individuals with disabilities.

Additional funding has been earmarked for initiatives such as improving accessibility for people with disabilities within the system ($20 million), enhancing transparency in pricing ($5.3 million), and bolstering governance and advisory policies to facilitate the implementation of these reforms.

Aged Care

A substantial $2.2 billion has been allocated to support Australians in the aged care sector.

This includes $531.4 million in funding for an additional 24,100 Home Care Packages to reduce wait times.

There are also investments in ‘critical digital systems’ to facilitate access to aged care information and implement the new Aged Care Act.

Aged care workers can also expect a pay rise, with the government guaranteeing that it will be in addition to the 15 per cent increase ordered by the Fair Work Commission in March.

Key Takeaways

• Prescription medication costs on the Pharmaceutical Benefits Scheme (PBS) will be capped at $31.60 for the next financial year, with a freeze on the price for pensioners and concession card holders at $7.70 until 29 June 2029.
• The federal budget included additional health measures such as strengthened Medicare, increased bulk-billing capacity, improved mental health services, NDIS reform, and targeted healthcare for women.
• The budget announced $2.8 billion in funding for urgent care clinics to alleviate pressure on hospitals, but the Royal Australian College of GPs criticised this decision as not the most efficient use of funds.
• Women's health initiatives received a significant boost, with funding for gynaecological consultations, tailored maternity care, and other health services benefiting women and children experiencing family and domestic violence.

How will the PBS price cap and other health initiatives impact you or your loved ones? Share your thoughts in the comments below!

 

[IAN3005]

Wow.... big deal... the original price was $6.30 up to $7.30 15% up held for a year... how about bringing i back down and holding it at the price for 3 years....

 

[Jennie]

Wow.... big deal... the original price was $6.30 up to $7.30 15% up held for a year... how about bringing i back down and holding it at the price for 3 years....

Don't know where you got scripts for $6.30 they have been going up .10c a year since forever. We are point to save a whole .50c over 5 yrs. Some discount pharmacies have scripts for $6.70 against the normal price this year of $7.70.

 

[Rob44]

Last GP's bill we got was $210, with approx $130 back from Medicare.

Assume the GP's consultancy takes 50% of the $210 for running cost, that's $105 paid to the GP. Assume 3 consultations per hour, that's $315 into the GP's bank account per hour. Allow a 7-hour day, that makes $2205 per day, or $11025 per 5 day week. Now let's say I exaggerate a bit and we'll knock off 1/3rd of that. That comes to $8350 per week. Assume that is 50% wrong, so the GP gets paid $4275 per week which per year is $205 200 for a 48 week working year.

Any statistics about the pay for our GPs in the real world, assuming a 35-hour working week and 48 working weeks in the year?

 

[Jennie]

Last GP's bill we got was $210, with approx $130 back from Medicare.

Assume the GP's consultancy takes 50% of the $210 for running cost, that's $105 paid to the GP. Assume 3 consultations per hour, that's $315 into the GP's bank account per hour. Allow a 7-hour day, that makes $2205 per day, or $11025 per 5 day week. Now let's say I exaggerate a bit and we'll knock off 1/3rd of that. That comes to $8350 per week. Assume that is 50% wrong, so the GP gets paid $4275 per week which per year is $205 200 for a 48 week working year.

Any statistics about the pay for our GPs in the real world, assuming a 35-hour working week and 48 working weeks in the year?

My gp gets nothing like that, all the gp's in his practice bulk bill, so they only get the measly Medicare rebate. These gp's are hard working and caring. I have tried 4 practices in Wagga and my home town, and have been miss diagnosed by several, pand now travel 40ks to Junee to see a decent gp.

 

[Rob44]

My gp gets nothing like that, all the gp's in his practice bulk bill, so they only get the measly Medicare rebate. These gp's are hard working and caring. I have tried 4 practices in Wagga and my home town, and have been miss diagnosed by several, pand now travel 40ks to Junee to see a decent gp.

Thanks for that. That is about $42 per consultation. Assuming 50% goes to cover the practice's costs then that's $84 per hour for four short consultations. Let's say $100 per hour if practice costs are a bit less. Plumbers are paid as much or more per hour.

It would be nice if we could judge correctly what GPs were paid but as they are independent contractors to a practice then that can be very hard to ascertain. And thus it is hard to judge what to make of the Royal College of GP's claims that Medicare needs to be increased as GPs are not being paid enough. Convenient for some, no doubt.

 

[IAN3005]

Don't know where you got scripts for $6.30 they have been going up .10c a year since forever. We are point to save a whole .50c over 5 yrs. Some discount pharmacies have scripts for $6.70 against the normal price this year of $7.70.

The local chemist did a deal the local Dr..